Ask HN: When do I impose caps?

3 points by mchadwick 17 years ago | 2 comments

I've been working on an application where each user on the system would, of course, incur some processing and some storage cost on my end. I would like, at some point, to have different levels (read: prices) of accounts based on usage. The majority of accounts would fall into the free category, while the larger ones would help pay to keep the system running.

Ideally, I'd like come out of the gates with an entirely free application, and let the community help shape the direction of the product. However, if I impose caps after the fact, I'm in a position similar to Zoto where I've burned the people who have helped build my product.

If I do a closed beta, or come up with an arbitrary hierarchy of caps and prices up front, I'm afraid it'll hinder adoption.

Any insight into the best way to impose caps? Feel it out after getting some users? Sooner rather than later?

inerte 17 years ago |

If you can't find where to draw the line now, you can put the cap later but don't charge the existing free users.

Example: I have a very old cellphone plan. It's not available for new carrier costumers. But the carrier never asked me to change to one of their new plans. I'm just using the old one.

So you can tweak the caps anytime you want. Start with free and very, very generous plan but also very, very expensive. Then take some statistics. If a lot of the free people are using 50% of their way into the expensive plan, create a middle-tier one, where you charge 60% of the price but it offers 50% of the features.

I know I haven't answered your question ;) Just wanted to say that you don't have to be perfect from the start.

mchadwick 17 years ago | |

That's extremely helpful. Thanks. Sometimes it's a bit daunting to be very pragmatic up front.